Budget to respond to SA jobs crisis

Next week's state budget will headline the South Australian government's urgent push to create jobs after a surge in unemployment.

Treasurer Tom Koutsantonis says the government will respond to a wide ranging review of state taxes in the budget in a bid to boost employment.

"As part of our state tax review we have been looking at how we can remove barriers to business growth and job creation so we can see more private sector investment," Mr Koutsantonis said on Friday.

The treasurer's comments came after SA posted its worst unemployment figures in 14 years on Thursday with the jobless rate rising to 7.6 per cent in May.

That was up from 7.2 per cent in April and was the worst since July 2001.

At the same time Alinta Energy confirmed plans to close its South Australian power stations and the Leigh Creek coal mine as early as 2016 with the probable loss of another 440 jobs.

On Friday, Mr Koutsantonis marked the start of construction of a new hardware store in Adelaide's north, a welcome development for the area that is also facing the loss of car maker Holden by the end of 2017.